Government waives Sh1.5 billion loan farmers owe AFC

Business Daily Kenya:  The Government has waived up to Sh1.5 billion in loans that distressed farmers in Kajiado, Narok and Baringo countie...

Business Daily Kenya: 

Tea farming. Photo/Courtesy

The Government has waived up to Sh1.5 billion in loans that distressed farmers in Kajiado, Narok and Baringo counties owe the Agricultural Finance Corporation (AFC).

This is part of a broader agenda aimed at easing financial pressure on farmers across the country to promote renewed investment in a key sector of the economy.

President Uhuru Kenyatta directed the National Treasury and AFC to ensure that farmers are handed back their title deeds to ease pressure on them and allow them to take other investment decisions.

The loans were taken to support wheat, sorghum and livestock farming, but capricious weather led to heavy farm losses and farmers were unable to repay.

AFC had continued to hold onto land title deeds taken as security for the loans. Samburu was also affected by the AFC distress and the President is likely to announce similar relief when he visits the county in the coming days.

The waiver is the latest in unprecedented relief the President has ordered over the last three months for distressed farmers as part of his agenda to bolster agriculture.

Out of the total amount waved, Sh475 million are from the dairy farmers belonging to the Meru Dairy Union owed to Government and a total of Sh1.1 billion to be advanced to Mumias, Chemelil, and Nzoia sugar factories to pay farmers arrears.

President Uhuru also said that a debt of Sh478 million for Coffee farmers’ Sacco be waived as well as Sh1.7 billion on STABEX funds through the Cooperative Bank of Kenya in the coffee-growing zones of Central and Eastern Kenya and Kisii and a loan amounting to Sh25 million from Bunyala Fishermen Cooperative Society owed to the AFC.

Last month President Kenyatta facilitated the payment of wage arrears dating back 10 years to 25,000 Agricultural Development Corporation workers amounting to Sh250 million.

The post Government waives Sh1.5 billion loan farmers owe AFC appeared first on Mediamax Network Limited.

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